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Bank of Canada Reinforces Cautious Tone

By

Don Curren

July 20, 2010 2:48 p.m. ET

TORONTO--The Bank of Canada reinforced the message that it will move slowly with future interest-rate increases as it reduced its growth forecasts Tuesday and pointed out that business investment in Canada remains stalled.

The bank had already struck a careful stance on policy at its last policy announcement in June, but Tuesday's statement put renewed emphasis on caution even as the bank raised its overnight target by 0.25...